Boca To Propose Budget Rolling Back Property Taxes

Eighth Year That Rate Reduced Without Cutting Services

July 7, 1997|By KARLA SCHUSTER Staff Writer

BOCA RATON - — Talk about being on a roll.

For the eighth consecutive year, city officials are expected to propose a 1997-98 budget that will roll back property tax rates without cutting services, a fiscal feat they said would be impossible to repeat after this year.

"There will be no increases in the property tax rate. Overall, it's going to be pretty much status quo from this year to next," City Council member Bill Glass said of City Manager Donna Dreska's budget proposal, which will be unveiled on Tuesday.

Next's year budget picture nearly mirrors this year's, with savings realized from lower property tax rates balanced by increases in other city fees. Last year, it was a utility tax rate hike. This year, the city plans on raising water and sewer rates, which have been flat for nearly a decade, as much as 30 percent.

Dreska would not comment on her upcoming budget proposal, except to note that at the City Council's goal-setting retreat in April, members were unified in their opposition to a property tax rate increase.

Last year, Dreska had said it would be nearly impossible to lower taxes another year without cutting into city services so it's unlikely the property tax rate will go down by much in the 1997-98 budget.

City officials would not say how much they will propose to lower property tax rates. This year, the city's property tax rate is $3.63 per $1,000. Because of higher assessments, the net effect would be a lowering of the average tax bill by about $12, compared to the previous year.

The budget battle will be waged over how much of the savings from lower property taxes will be offset by higher water and sewer rates.

A consultant hired by the city to study its rate structures has recommended several options.

The Federation of Boca Raton Homeowners' Associations last week announced its opposition to any increases.

The increases would be used to pay for higher maintenance and operation costs, as well as a new round of major improvement projects, including the engineering study for a new, $40 million water treatment plant.

The city's water and sewer rates are the lowest in the county, while its water usage rate is nearly triple the state average. Water rates haven't gone up in eight years, sewer rates in a decade.

Glass said hewould be willing to support at least a 20 percent increase in water and sewer rates.

"Our water rates are about twice as low as anybody around and 20 percent over what we've got now isn't that bad," Glass said. "I know there are people who think any increase isn't due, but our sewer and water rates have been pretty low for a long time."